With rapidly advancing graphics hardware available, real-time graphics techniques have become significantly more capable of handling photorealistic effects. The application of these techniques to augmented reality is creating new possibilities for the seamless integration of virtual and physical objects. We demonstrate two methods for simulating light transport. The first renders virtual objects of arbitrary Phong material with light from the physical environment. The second adds virtual light onto real-time camera imagery of the physical world. Both techniques yield fully dynamic results at interactive framerates with a minimum of offline preparation.